1:1 bonus share & FIIs increase stake: Steel tube manufacturing stock gains 8 per cent as it announces successful Phase 1 expansion at its subsidiary Nabha Steels and Metals

The stock gave multibagger returns of 390 per cent in 3 years; 1,600 per cent in 5 years and a whopping 4,000 per cent in a decade.

JTL Industries Ltd, a leading Indian manufacturer of steel tubes, pipes and related products (including ERW pipes, galvanized pipes and solar structures), serves a broad client base in infrastructure, energy and more (including Tata Power, Ashok Leyland and Siemens). With a current production capacity of nearly 590,000 MTPA and plans to reach 1 million MTPA by 2025, they focus on growing value-added products. JTL, one of the fastest-growing steel tube manufacturers, has its headquarters in Chandigarh and manufacturing facilities across India.

Today, shares of JTL Industries Ltd gained 8 per cent to an intraday high of Rs 225.70 per share from its previous closing of Rs 208.90. The stock’s 52-week high is Rs 276.90 per share while its 52-week low is Rs 158.55 per share.

JTL Industries Ltd announced the successful completion of Phase 1 expansion at its subsidiary Nabha Steels and Metals. This phase will see Nabha Steels produce 5,000 metric tons of HR coils, the raw material for JTL's ERW Steel Pipes, per month. The expansion strengthens JTL's backward integration, reducing reliance on external suppliers for raw materials, supporting production at their Mandi Gobindgarh plant, and is expected to improve EBITDA per ton at that plant by Rs 2,000. With Phase 1 complete, JTL anticipates a swift commencement of Phase 2 which will further increase production output and diversify their product portfolio. This strategic move will not only boost galvanized steel tube and pipe production but also streamline manufacturing, enhance product offerings, and allow JTL to enter new markets, solidifying its position in the steel industry.

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According to the Quarterly Results, the company reported net sales of Rs 465.94 crore and net profit of Rs 29.55 crore in Q4FY24 compared to net sales of Rs 472.63 crore and net profit of Rs 36.65 crore in Q4FY23. In its annual results, the net sales increased by 31.6 per cent to Rs 2,040.23 crore and net profit increased by 25.4 per cent to Rs 113.01 crore in FY24 compared to FY23. This substantial growth was driven by high demand for our products and the effective execution of strategic expansion initiatives throughout the year. The company declared a dividend of Rs 0.25 per share on the nominal value of Rs 2, i.e. 12.50 per cent for FY24, showcasing our steadfast dedication to enhancing shareholder value.

In FY24, FIIs bought 68,63,325 shares and increased their stake to 4.62 per cent compared to 1.62 per cent in December 2023. On September 07, 2023, the shares of the company ex-traded bonus share in the ratio 1:1 and earlier to it i.e., on August 04, 2021, the shares of the company ex-traded stock split of equity shares from a face value of Rs 10 to a face value of Rs 2 each. The stock gave multibagger returns of 390 per cent in 3 years; 1,600 per cent in 5 years and a whopping 4,000 per cent in a decade. Investors should keep an eye on this stock.

Disclaimer: The article is for informational purposes only and not investment advice.